Index Fund Investing

Index funds have long been considered one of the smartest investment choices one can make. Apart from being affordable and less risky, index funds enable diversification and generate attractive returns for investors over a period of time.

BENEFITS OF INVESTING IN AN INDEX MUTUAL SUCH AS NIFTY 50

1. The Fund Manager replicates the performance of the Index by including only those companies in the fund that are included in the index.

2. Hence, it’s a rule-based investing strategy without any discretion of the Fund Manager.

3. There is a self-correcting mechanism as the new champion companies are included and laggards are excluded from the Index

4. Index Mutual Funds are available at the lowest cost compared to other Mutual Fund

5. Nifty 50 Index Fund has delivery an annual return of c.12.5% over a period a period of last 28 years.

6. Helps you realize the power of compounding over a long period of time.